Budget Implementation Act, 2017, No. 2

A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

Part 1 implements certain income tax measures proposed in the March 22, 2017 budget by

(a) removing the classification of the costs of drilling a discovery well as “Canadian exploration expenses”;

(b) eliminating the ability for small oil and gas companies to reclassify up to $1 million of “Canadian development expenses” as “Canadian exploration expenses”;

(c) revising the anti-avoidance rules for registered education savings plans and registered disability savings plans;

(d) eliminating the use of billed-basis accounting by designated professionals;

(e) providing enhanced tax treatment for eligible geothermal energy equipment;

(f) extending the base erosion rules to foreign branches of Canadian insurers;

(g) clarifying who has factual control of a corporation for income tax purposes;

(h) introducing an election that would allow taxpayers to mark to market their eligible derivatives;

(i) introducing a specific anti-avoidance rule that targets straddle transactions;

(j) allowing tax-deferred mergers of switch corporations into multiple mutual fund trusts and allowing tax-deferred mergers of segregated funds; and

(k) enhancing the protection of ecologically sensitive land donated to conservation charities and broadening the types of donations permitted.

It also implements other income tax measures by

(a) closing loopholes surrounding the capital gains exemption on the sale of a principal residence;

(b) providing additional authority for certain tax purposes to nurse practitioners;

(c) ensuring that qualifying farmers and fishers selling to agricultural and fisheries cooperatives are eligible for the small business deduction;

(d) extending the types of reverse takeover transactions to which the corporate acquisition of control rules apply;

(e) improving the consistency of rules applicable for expenditures in respect of scientific research and experimental development;

(f) ensuring that the taxable income of federal credit unions is allocated among provinces and territories using the same allocation formula as applicable to the taxable income of banks;

(g) ensuring the appropriate application of Canada’s international tax rules; and

(h) improving the accuracy and consistency of the income tax legislation and regulations.

Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures confirmed in the March 22, 2017 budget by

(a) introducing clarifications and technical improvements to the GST/HST rules applicable to certain pension plans and financial institutions;

(b) revising the GST/HST rules applicable to pension plans so that they apply to pension plans that use master trusts or master corporations;

(c) revising and modernizing the GST/HST drop shipment rules to enhance the effectiveness of these rules and introduce technical improvements;

(d) clarifying the application of the GST/HST to supplies of municipal transit services to accommodate the modern ways in which those services are provided and paid for; and

(e) introducing housekeeping amendments to improve the accuracy and consistency of the GST/HST legislation.

It also implements a GST/HST measure announced on September 8, 2017 by revising the timing requirements for GST/HST rebate applications by public service bodies.

Part 3 amends the Excise Act to ensure that beer made from concentrate on the premises where it is consumed is taxed in a manner that is consistent with other beer products.

Part 4 amends the Federal-Provincial Fiscal Arrangements Act to allow the Minister of Finance on behalf of the Government of Canada, with the approval of the Governor in Council, to enter into coordinated cannabis taxation agreements with provincial governments. It also amends that Act to make related amendments.

Part 5 enacts and amends several Acts in order to implement various measures.

Division 1 of Part 5 amends the Bretton Woods and Related Agreements Act to update and clarify certain powers of the Minister of Finance in relation to the Bretton Woods institutions.

Division 2 of Part 5 enacts the Asian Infrastructure Investment Bank Agreement Act which provides the required authority for Canada to become a member of the Asian Infrastructure Investment Bank.

Division 3 of Part 5 provides for the transfer from the Minister of Finance to the Minister of Foreign Affairs of the responsibility for three international development financing agreements entered into between Her Majesty in Right of Canada and the International Finance Corporation.

Division 4 of Part 5 amends the Canada Deposit Insurance Corporation Act to clarify the treatment of, and protections for, eligible financial contracts in a bank resolution process. It also makes consequential amendments to the Payment Clearing and Settlement Act.

Division 5 of Part 5 amends the Bank of Canada Act to specify that the Bank of Canada may make loans or advances to members of the Canadian Payments Association that are secured by real property or immovables situated in Canada and to allow such loans and advances to be secured by way of an assignment or transfer of a right, title or interest in real property or immovables situated in Canada. It also amends the Canada Deposit Insurance Corporation Act to specify that the Bank of Canada and the Canada Deposit Insurance Corporation are exempt from stays even where obligations are secured by real property or immovables.

Division 6 of Part 5 amends the Payment Clearing and Settlement Act in order to expand and enhance the oversight powers of the Bank of Canada by further strengthening the Bank’s ability to identify and respond to risks to financial market infrastructures in a proactive and timely manner.

Division 7 of Part 5 amends the Northern Pipeline Act to permit the Northern Pipeline Agency to annually recover from any company with a certificate of public convenience and necessity issued under that Act an amount equal to the costs incurred by that Agency with respect to that company.

Division 8 of Part 5 amends the Canada Labour Code in order to, among other things,

(a) provide employees with a right to request flexible work arrangements from their employers;

(b) provide employees with a family responsibility leave for a maximum of three days, a leave for victims of family violence for a maximum of ten days and a leave for traditional Aboriginal practices for a maximum of five days; and

(c) modify certain provisions related to work schedules, overtime, annual vacation, general holidays and bereavement leave, in order to provide greater flexibility in work arrangements.

Division 9 of Part 5 amends the Economic Action Plan 2015 Act, No. 1 to repeal the paragraph 167(1.‍2)‍(b) of the Canada Labour Code that it enacts, and to amend the related regulation-making provisions accordingly.

Division 10 of Part 5 approves and implements the Canadian Free Trade Agreement entered into by the Government of Canada and the governments of each province and territory to reduce or eliminate barriers to the free movement of persons, goods, services and investments. It also makes related amendments to the Energy Efficiency Act in order to facilitate, with respect to energy-using products or classes of energy-using products, the harmonization of requirements set out in regulations with those of a jurisdiction. Finally, it makes consequential amendments to the Financial Administration Act, the Department of Public Works and Government Services Act and the Procurement Ombudsman Regulations and it repeals the Timber Marking Act and the Agreement on Internal Trade Implementation Act.

Division 11 of Part 5 amends the Judges Act

(a) to allow for the payment of annuities, in certain circumstances, to judges and their survivors and children, other than by way of grant of the Governor in Council;

(b) to authorize the payment of salaries to the new Associate Chief Justice of the Court of Queen’s Bench of Alberta; and

(c) to change the title of “senior judge” to “chief justice” for the superior trial courts of the territories.

It also makes consequential amendments to other Acts.

Division 12 of Part 5 amends the Business Development Bank of Canada Act to increase the maximum amount of the paid-in capital of the Business Development Bank of Canada.

Division 13 of Part 5 amends the Financial Administration Act to authorize, in an increased number of cases, the entering into of contracts or other arrangements that provide for a payment if there is a sufficient balance to discharge any debt that will be due under them during the fiscal year in which they are entered into.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Votes

Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 28, 2017 Passed Concurrence at report stage of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 28, 2017 Failed Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures (report stage amendment)
Nov. 28, 2017 Failed Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures (report stage amendment)
Nov. 28, 2017 Passed Tme allocation for Bill ,
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:15 a.m.
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Toronto Centre Ontario

Liberal

Bill Morneau LiberalMinister of Finance

Mr. Speaker, what I would say to the opposition member is that if he wants to make an allegation of wrongdoing, he should do it outside this House.

I am focused on doing the work that Canadians asked us to do. What we are talking about today is moving forward on a bill that is going to continue our plan to make an enormous difference for Canadians. We have seen, over the last couple of years, that the work that we are doing is making an enormous difference. There have been 500,000 new jobs over the last couple of years and the lowest unemployment rate over the course of a decade.

What we are talking about now is continuing that work with measures that are going to ensure tax fairness and that we can continue on our plan, in its entirety, to make a continuing difference for Canadians. That is what we are doing today and that is what we would like to talk about.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:20 a.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

As you know, Madam Speaker, we now have a record debt load for average Canadian families, the worst in the industrialized world. If that is something the finance minister is proud of, then I think his priorities are all wrong.

The government has brought in closure now, on average, 25% more times than the Conservative Harper government did. We can remember how Canadians reacted to the closures and omnibus legislation of the Harper government. Now the Liberals are 25% worse in terms of closure. It is appalling.

The real reason the government seems to be ramming through this legislation is because it is taking absolutely no action against all of these overseas tax havens that so many Canadians are concerned about. I cannot talk about ethical lapses, but we have the ethical void of the finance minister, who has been unable to answer any of the questions asked by opposition members in the House. Is that not the real reason that the government is ramming through this legislation, invoking closure yet again, because of the ethical void of the finance minister and the government?

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:20 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, I am very happy to talk about what we are trying to do for Canadians through this bill and the high ethical standards our government will continue with, and what we are actually doing for Canadians on a day-to-day basis.

In this bill, we will make an enormous difference for Canadians. We will continue with the plans we have put forward and will talk about them this morning. I hope we will talk about the measures actually in the bill. We will talk about tax fairness. We will talk about how we have improved flexible work arrangements for Canadians. We will talk about our continuing goal of being part of the international community through our investment in the Asian Infrastructure Investment Bank.

We would like talk about the changes we have made for nurse practitioners, allowing them to have a broader scope of responsibility, not only making it easier for people to get access to medical care but also making our health care system more efficient.

We will want to continue to talk about the measures in this bill, which we would like to move forward now.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:20 a.m.
See context

Conservative

Candice Bergen Conservative Portage—Lisgar, MB

Madam Speaker, my colleague, the member for Carleton posed a question to the minister, and I actually thought that after having a chance to sleep on this, the minister would gather his thoughts and information and answer the question.

One of three answers is possible. There is, “I don't know who sold the shares”, or “I did not sell the shares” or—

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:20 a.m.
See context

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, on a point of order, and with all due respect to the members opposite and the line the questioning they might want to ask, I think it is important as we go through this process to note that our Standing Orders clearly indicate that the members opposite need to be relevant to the subject at hand.

What I would suggest—

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:20 a.m.
See context

Conservative

Candice Bergen Conservative Portage—Lisgar, MB

Madam Speaker, let me quickly mention how it is relevant.

We have a Minister of Finance who has shown a number of ethical lapses, in fact one that he was found guilty of and fined for because he did not disclose all of the information he should have to the Ethics Commissioner. He has introduced legislation that—

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:20 a.m.
See context

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, on a point of order, in no way is character assassination relevant to the legislation before us or the procedure we are entered into.

We are talking about the budget implementation bill and time allocation. The members opposite adjourned debate on this very piece of legislation. If they want to keep relevant, those are the two items they should be talking about. Maybe they could justify why they moved adjournment yesterday. Maybe they could ask questions related specifically to the budget implementation bill. That is what we are debating today.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:25 a.m.
See context

Conservative

Candice Bergen Conservative Portage—Lisgar, MB

Madam Speaker, the government agreed with us yesterday that we should adjourn debate on the budget implementation bill. We did so because we do not have confidence in this Minister of Finance who introduced this bill, as he will not answer very simple questions.

He had a chance to look over his records and now to answer either that he knows who sold the shares, that he does not know who sold the shares, or that he sold the shares. It is a very simple question. It needs a very simple answer.

I would ask the Minister of Finance the same question. Does he know who sold the 680,000 Morneau Shepell shares prior to the tabling of the bill regarding the budget and the tax changes? It is a very simple question.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:25 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, if the member opposite would like to make an allegation of wrongdoing outside this House, I would be happy to answer in full force.

What I can say is that today we are talking about the second budget implementation bill to move forward with the work we are doing for Canadians. Canadians know that we should be focusing on work that would benefit them, and not on spurious correlations that have absolutely nothing to do with the work in this House.

I will continue to talk about that and why we are moving forward on things that actually matter to Canadians. That is what we are talking about this morning. We are going to talk about how we are continuing to make a difference for Canadian families, a difference that has been enormous over the last couple of years and we will continue to work on on their behalf.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:25 a.m.
See context

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Madam Speaker, I have not heard the finance minister address the issue raised by our House leader that when the Liberals were in opposition, they joined us in condemning the practices of the then Harper government for shutting down debate in Parliament time and time again. We actually thought things could not get worse. It was hard to imagine how they would get worse. Somehow, the Liberals have found a way to make things worse for Parliament.

If the finance minister would not mind listening, I have a specific question for him. Like the Prime Minister, he has often talked about respect for Parliament and the process. How does he demonstrate that respect? He contributes to the idea that we should shut down debate more often than Stephen Harper did. That is the fact of the matter today.

If he wants to talk about facts, I think he should. He should address the fact that rather than moving through a normal process and talking about something significant, like the implementation of the budget in a proper way, as I am sure he talked about as a candidate, he has instead reverted to this other type of politics, where they say they will use their power to force upon Parliament vote after vote before debate can be concluded. I will remind him that is how mistakes get made. I remind him that when he disclosed his assets to the National Post , through John Ivison, in trying to clear up one ethical mess, he made another ethical mess. Maybe he was rushing forward on that too quickly and creating the cloud himself by not placing things in a blind trust. That was no one else's decision, but his.

The decision today is about his government's intention to ram through another bill, doing so 25% more often than Stephen Harper did. I would like him to address that one simple fact, if he could somehow find a way to do it.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:25 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, I would like to remind the member that Bill C-63 has been debated extensively in the House and at the finance committee. We have seen four days of second reading debate, during which more than 70 members have spoken. That includes 23 members from the Conservative Party and 10 members from the New Democratic Party. The bill has also been studied at the finance committee for six hours. We have seen eight members speaking at report stage.

We want to move forward. This bill is clearly the next step in our continuing goal of making a difference for Canadians. I suspect that the member opposite should be pleased that his constituents are feeling much better because there is more employment across this country. We are seeing 500,000 new jobs. I hope the member opposite is pleased with the fact that nine out of 10 families are seeing more money because of the Canada child benefit. Because of the positive economic results we have seen, we are able to make sure that benefit will keep up with the costs of inflation.

That is the kind of work we are doing on behalf of Canadians. It is the kind of work we are committed to continue doing. This debate has been extensively elaborated upon, and now we would like to move forward to do the good work that Canadians asked us to do.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:30 a.m.
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Conservative

Peter Kent Conservative Thornhill, ON

Madam Speaker, the finance minister cannot seem to understand why we still have so many questions, so let us come at it another way. Fool Canadians once, shame on the finance minister. Fool Canadians twice, shame on us.

The finance minister has admitted guilt by paying a fine levied by the Ethics Commissioner, as well as by surrendering millions of dollars of ill-gotten gains to charity. That is why Canadians' confidence has been shaken in the capacity of this minister. He now refuses to answer questions about major stock trades made before a ministerial announcement. He refuses to disclose information within—

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:30 a.m.
See context

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, again I rise on the issue of relevancy. There is an obligation on the part of the official opposition to be relevant to the debate. Today's debate is about a time allocation motion and Bill C-63. Issues related to something the opposition wants to create at this point in time are just not relevant to the debate we are supposed to be having.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:30 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, I would remind the member opposite that we have a process in this House of working with the commissioner of ethics. That is a process I have followed to the letter by disclosing all of my assets. Making up fabrications in order to move the dial from what we are actually doing for Canadians is what we are clearly seeing repeated over and over again. The actions of this government and mine as finance minister have led to a situation where the only thing the opposition members want to talk about is me, because the only thing they do not want to talk about is what is going on for Canadians. When growth has increased in this country significantly above the anemic growth rate under the previous government, they obviously do not want to talk about that. When we create 500,000 new jobs and reach the lowest unemployment rate in a decade, they obviously do not want to talk about that. When families are doing better because they have more money in their pockets, they obviously do not want to talk about that. Those are the things we want to continue to do on behalf of Canadians.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:30 a.m.
See context

NDP

Marjolaine Boutin-Sweet NDP Hochelaga, QC

Madam Speaker, I want to ask the Minister of Finance if he knows whether his government plans to use time allocation every time the Minister of Finance introduces a bill.

Perhaps the Liberals do not want us to discuss them for too long, in case we find additional conflicts of interest involving the finance minister.